D-Wave Quantum (NYSE:QBTS) Trading 18.5% Higher - Should You Buy?

Key Points

• D-Wave Quantum Inc. shares surged by 7.5%, trading as high as $20.08, though overall trading volume was significantly lower than average.
• Multiple analysts have issued "buy" ratings for D-Wave Quantum, with a consensus price target currently at $19.27, including a $30.00 target from Rosenblatt Securities.
• The company reported quarterly earnings of $3.10 million in revenue, a 40.9% year-over-year increase, despite missing EPS estimates.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares were up 18.5% during trading on Wednesday . The stock traded as high as $22.85 and last traded at $22.49. Approximately 125,596,279 shares traded hands during mid-day trading, an increase of 95% from the average daily volume of 64,491,363 shares. The stock had previously closed at $18.98.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Roth Capital reiterated a "buy" rating on shares of D-Wave Quantum in a research report on Friday, June 13th. Wall Street Zen cut D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Williams Trading set a $20.00 price objective on D-Wave Quantum in a research note on Wednesday, June 18th. Needham & Company LLC reaffirmed a "buy" rating on shares of D-Wave Quantum in a research note on Monday, August 4th. Finally, Cantor Fitzgerald assumed coverage on D-Wave Quantum in a report on Wednesday, July 2nd. They issued an "overweight" rating and a $20.00 price target for the company. Eleven research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $19.27.

D-Wave Quantum Stock Up 11.9%

The company has a debt-to-equity ratio of 0.05, a current ratio of 42.99 and a quick ratio of 42.86. The firm's 50-day simple moving average is $17.40 and its two-hundred day simple moving average is $13.41. The company has a market capitalization of $9.20 billion, a price-to-earnings ratio of -25.61 and a beta of 1.39.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.03). The firm had revenue of $3.10 million for the quarter, compared to analysts' expectations of $2.55 million. D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 118.87%. D-Wave Quantum's revenue for the quarter was up 40.9% compared to the same quarter last year. Sell-side analysts predict that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $17.93, for a total value of $143,440.00. Following the sale, the director directly owned 36,295 shares in the company, valued at $650,769.35. This trade represents a 18.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO John M. Markovich sold 50,000 shares of the business's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $16.30, for a total transaction of $815,000.00. Following the sale, the chief financial officer owned 1,599,511 shares in the company, valued at $26,072,029.30. This trade represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 168,000 shares of company stock worth $2,937,740 over the last quarter. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vontobel Holding Ltd. grew its position in D-Wave Quantum by 786.8% during the first quarter. Vontobel Holding Ltd. now owns 110,850 shares of the company's stock valued at $842,000 after purchasing an additional 98,350 shares in the last quarter. Kingswood Wealth Advisors LLC acquired a new stake in D-Wave Quantum in the first quarter valued at approximately $167,000. Swiss National Bank acquired a new stake in D-Wave Quantum in the first quarter valued at approximately $3,532,000. Verity Asset Management Inc. acquired a new stake in D-Wave Quantum in the first quarter valued at approximately $251,000. Finally, Deutsche Bank AG lifted its stake in D-Wave Quantum by 35.0% in the fourth quarter. Deutsche Bank AG now owns 73,906 shares of the company's stock valued at $621,000 after acquiring an additional 19,157 shares during the last quarter. 42.47% of the stock is owned by hedge funds and other institutional investors.

D-Wave Quantum Company Profile

D-Wave Quantum Inc develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community.